Challenges of development
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Challenges of development



Examines the challenges facing development in

Examines the challenges facing development in



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    Challenges of development Challenges of development Presentation Transcript

    • Challenges of Development
    • What is Development?
      Development –
      Significant and measurable economic growth.
      The emergence of social, economic, and political institutions.
      What is the difference between Development and Growth?
      Growth –
      Quantitative increases in economic activities.
      How do we measure Growth?
      GNP and GDP
      Easy to do?
      UN’s – HDI Index
    • GNP & GDP of states around world
      1. United States: 12.970 billion
      2. Japan: 4.988 billion
      203. Guinea Bissau: .28 billion
      Global GDP (in millions)
      World: 58,133,309
      USA: 14,256,300
      Japan: 5,067,526
      China: 4,909,280
      Kiribati: 130
    • Most countries/economists use GDP to measure economic performance.
      Not always easy to measure in developing countries
      What to include?
    • GDP is not enough…
      Economic development does not equal social development.
      How to measure human development?
      Human Development Index
      Access to health care, housing, education, proper nutrition, safe environment an overall improved quality of life, enjoyment of freedoms.
    • Human Development Index
      Measures the quality of life people experience
      Developed by United Nations Development Program (UNDP)
      Formula includes: life expectancy at birth, income, literacy, and access to education.
      Gender development index: concentrates on inequalities between women and men
    • Role of Government
      Governments may promoted or impede development.
      Close relationship between economic development and political development.
      Government Institutions: provide the essential framework within which development occurs; Determine the rules of the game
      Many societies fail to make economic progress because of weak institutions
    • Theories of Development
      Theory: predicts how humans behave or how things work in the world under certain circumstances
      Development Theory: Attempts to explain how countries achieve specific economic and political improvements
    • Modernization Theory
      All societies go through similar stages of development
      Embraces Free-market capitalism
      Dominant theory in 1950’s and 1960’s
      Western Europe and US as model
      Treated Africa, Asia and Latin America as homogenous mass
    • Types of Societies
      Traditional Society: self-sufficiency, loyalty to family, strong kinship, weak institutions, low literacy levels and tech. widespread superstition.
      Transitional: traditional and modern characteristics. Political institutions emerge, literacy increases, less focus on agriculture
      Modern: Westernized, achievement oriented, urban, literate, high quality of life
    • Marxist Theory
      History of society is history of struggle between those who control wealth (Bourgeoisie and Proletariat)
      Economic development is determined and controlled by the govt.
      After economy is developed,
      state will wither away
      since no need for govt.
    • Dependency Theory
      Influenced by Marxist emphasis on class conflict.
      Three classes of countries
      Capitalism reinforces dependency and economic inequalities
      Advocates cooperation among poor countries and import substitution.
    • Other Theories
      Third World and African Socialism
      Opposes Marxism and Capitalism draw upon African traditions of communalism and humanism
      Community and Grassroots Development
      Bottom up approach (Grameen Bank). Traditional values used to promote economic growth & equity.
      Feminist Theory
      Focus on women’s empowerment, active participation in economic development and improved social, economic and political conditions
    • What influences development?
      Values of Leaders and Citizens
      Why would this matter?
      Asia: Confucianism
      Natural Resources
      Are natural resources enough?
      Why is an “agricultural revolution” important?
      Natural Disasters
      Impede or reverse development
    • Population
    • Population
      Small population can discourage investments and prevent realization of economies of scale
      Overpopulated countries are generally poor
      Population of India grows by 48,000 a day
      Rate of population change threatens earths carrying capacity
    • Education and Health Care
      Education challenges traditional values and social arrangements, empowers women, helps farmers.
      Poverty reinforces health problems
      Loss of workforce to AIDS
    • Political Instability
      Forces best educated and most talented to leave
      Increases risks for investors, destroys property, disrupts agriculture and industrial activities.
      Destroys infrastructure
      Biafra in Nigeria
    • Corruption
      Drains resources away from public services and infrastructure projects
      Bureaucratic Corruption
      Makes everything more expensive
      institutions are weakened
    • Why is Corruption so Pervasive?
      No accountability and lack of good governance
      Employment in govt. is about personal gain
      Economic hardship
      Average persons use officials corruption to justify personal corruption
      Government Control of Economy
    • Debt & Foreign Aid
      Trapped in Debt from foreign aid and loans.
      Reliance on International Monetary Fund
      IMF determines state’s economic policies.
      Despite substantial aid, most recipients fail to develop